Bossard (BOSN) H1 2024 earnings summary

Executive summary

• Achieved satisfactory H1 2024 results despite an 11.7% sales decline and challenging economic conditions, with some stabilization in Q2 and strong growth in India.

• Profitability supported by improved gross profit margin of 33.3% and cost reductions through efficiency and digitalization.

• Benefited from new opportunities in electronics, semiconductor, and aerospace sectors, especially in India and Benelux after the acquisition of Dejond Fastening.

• Successful rollout of new ERP/digital platforms in France and South Africa; ongoing digitalization investments.

• Acquisition of Dejond Fastening NV in Belgium and full ownership of bigHead Fasteners Ltd in the UK expanded market presence.

Financial highlights

• H1 2024 net sales reached CHF 509.4 million, down 11.7% year-over-year, with currency effects negatively impacting results.

• Gross profit margin improved to 33.3% from 32% last year.

• EBIT decreased 16.6% to CHF 58.1 million; EBIT margin at 11.4% (vs. 12.1%).

• Net income declined to CHF 42.4 million from CHF 49.9 million; return on sales at 8.3%.

• Free cash flow was CHF 30.9 million, reflecting higher acquisition outflows.

Outlook and guidance

• Persistent uncertainty expected due to unsettled economic environment, geopolitical tensions, and trade conflicts.

• Cautious optimism for 2024, supported by a robust project pipeline, focus on sunrise industries, and digitalization.

• Midterm targets: organic sales growth >5%, EBIT margin 12–15%, equity ratio >40%, dividend payout ratio at 40% of net income.

• CapEx for 2024 expected at CHF 34–36 million, with higher spending in H2.

• Moderate economic demand and a slightly higher cost base anticipated for H2 2024.